Apple Halts Vision Pro Production Amid Low Demand and Strategic Shift

High costs and limited adoption prompt Apple to focus on developing a more affordable mixed-reality headset.

Washington [US], January 3: Apple has reportedly ceased production of its first-generation Vision Pro headset, according to MacRumors, a leading Apple-focused news outlet. The decision comes amid dwindling demand, high production costs, and strategic shifts in Apple’s mixed-reality roadmap.

Reports suggest Apple began scaling back production in early summer, with its assembler Luxshare producing only 1,000 units daily by October—a 50% reduction from peak manufacturing levels. By November 2024, Apple reportedly instructed Luxshare to wind down production entirely.

Excess Inventory and Strategic Pause

Apple is estimated to have 500,000 to 600,000 units of Vision Pro inventory in stock, expected to meet demand through 2025. Warehouses are also reportedly filled with tens of thousands of undelivered components, signaling Apple’s cautious approach to avoid oversupply.

The USD 3,499 price tag and a limited content ecosystem have been major barriers to broader adoption. Initially marketed as an “early-adopter product” by CEO Tim Cook, the Vision Pro targeted tech enthusiasts but failed to generate sustained excitement even within this niche.

Focus Shifts to Affordable Mixed-Reality Headset

In response to these challenges, Apple is reportedly redirecting its efforts toward developing a more affordable mixed-reality headset. Suppliers have been asked to prepare for the production of up to four million units of this lower-cost device throughout its lifecycle—half the original Vision Pro’s target.

Future Updates and Timeline

While work on the second-generation Vision Pro has reportedly been paused for at least a year, sources indicate Apple may release an incremental update to the original Vision Pro. Expected improvements include an upgraded M5 chip and enhanced AI features, with a potential launch timeline between late 2025 and early 2026.

This strategic pivot highlights Apple’s recognition of the barriers to mass adoption and its intent to create a more accessible entry point into the mixed-reality market.